ABC成本分析法(英文版)

成功经理人
Departmental Overhead Rates
Indirect Labor Indirect Materials Other Overhead
6
Stage One: Costs assigned to pools Cost pools
Department 1
成功经理人
Erosion of company profits
Price cuts produce increased sales in
11
units but decreased total revenue High mark-ups on specialty products didn‟t offset the fall in profit margins of high volume products
14
to products
成功经理人
Activity Based Costing (ABC)
The objective of activity-based costing is to understand the causes of overhead costs and to identify the real profitability of products and customers.
9
support activity costs and the basis for assigning these costs to products Why? 1. Allocations are based on unit or volume related measures. 2. Different products consume different amounts of support activities.
20
成功经理人
Identifying and Defining Activities 21
Unit-Level Activities Batch-Level Activities
An ACTIVITY is a part of the production process for which management wants a separate reporting of costs. Product-sustaining Activities
1
MAA 703 Management Accounting
Topic 6 Activity-Based Costing
成功经理人
Evolution of ABC
Conventional costing systems use a two-
2
stage allocation process: 1. service department costs are allocated to production departments. 2. production department overhead costs are allocated to products using a volume-based predetermined overhead rate.
成功经理人
Solution: Activity Based Costing
ACTIVITIES CONSUME RESOURCES PRODUCTS CONSUME ACTIVITIES
Activities are used to link resource costs
成功经理人
Facility-sustaining Activities
成功经理人
Questionable profit margins
To compete in the marketplace, some
10
companies have had to cut the prices of high volume popular items. But They have been able to achieve high mark-ups on low volume specialty products.
18
cost objects and the performance of activities can help solve problems such as distorted product costs poor cost control the form of ABC adopted depends on the problems that need to be addressed
成功经理人
4
Departmental Overhead Rates
5
Finishing Department Painting Department
Shipping Department
A two stage process is necessary because costs are allocated to departments and then to products.
成功经理人
Designing an ABC System
Cost Objects (e.g., products and customers)
19
Activities
Consumption of Resources
Cost
成功经理人
Activity Based Costing Departmental Overhead Rates
Plantwide Overhead Rate
成功经理人
17
Overhead Allocation
Activity-based costing
is a way of measuring both the cost of
成功经理人
Product costs don’t make sense
Problem: There may be no relationship
3
between the overhead application base and the way that different products cause overhead costs The result: High-volume simple products are overcosted and over-priced Low-volume complex products are under-costed and under-priced 成功经理人
Raw Materials Cost
Products
Departmental Allocation Bases
成功经理人
Cost Distortions caused by 2-stage allocations
There is a no link between the cause of
成功经理人
Causes of problems
Increased product diversity changing cost structures
12
use of volume-based cost drivers
Have resulted in:
Allocation bases often differ from traditional costing systems. 成功经理人 Overhead rates may be based on activity at capacity.
How Costs are Treated Under Activity-Based Costing
distorted product costs
成功经理人
Solution: Activity Based Costing
ABC uses cost drivers that directly link
13
activities performed to products made. cost drivers are selected which measure the average demand placed on each activity by each product. activity cost pools are assigned to products in proportion to the way that they consume each activity.
Department 2
Department 3
成功经理人
Departmental Overhead Rates
Indirect Labor
Indirect Materials
7
Stage One: Costs assigned to pools Cost pools Stage Two: Costs applied to products
Other Overhead
Department 1
Department 2
Department 3
Products
成功经理人
Departmental Overhead Rates
Indirect Labor Indirect Materials Other Overhead
Plantwide Overhead Rates
Companies have tended to use direct labour as the overhead application base.
However direct labour is now a relatively minor part of total manufacturing cost. Many tasks that used to be done by hand are now done by automated equipment.